DTN Midday Livestock Comments 10/02 11:59

DTN Midday Livestock Comments 10/02 11:59 Livestock Futures Draw Additional Attention Friday Strong triple-digit gains are holding midday through the entire livestock market as the focus on end-of-week position taking and potential longer-term stability is motivating traders. Trade volume is expected to remain slow through the remainder of the session, keeping prices likely in the current range. By Rick Kment DTN Analyst GENERAL COMMENTS: Firm buyer support has developed through the entire livestock market with combined end of week position taking and the focus on potential stability in meat markets. Trading ranges are expected to remain in at current levels through the rest of the session, which could help to bring even more stability to the market early next week. Corn prices are higher in light trade. December corn futures are 2/3 cent per bushel higher. Stock markets are higher in light trade. The Dow Jones is 30 points higher while Nasdaq is up 17 points. LIVE CATTLE: Firm gains are holding across live cattle futures as traders try to stabilize the market going into the weekend. October futures are leading nearby trade higher with a $1 per cwt gain. The focus through the entire market continues to be on trying to establish support levels, and the ability to spark additional beef demand through the next several weeks. Cash cattle sales are undeveloped so far Friday, and at this point even though both sides probably need to more have numbers moved, it is uncertain if any additional trade will develop given the market slide. Bids are developing at $118 in the South and $184 in the North, well below previous trade activity. Beef cut-outs at midday are mixed, $0.17 higher (select) and down $0.80 per cwt (choice) with light movement of 80 total loads reported (29 loads of choice cuts, 16 loads of select cuts, 21 loads of trimmings, 14 loads of ground beef). FEEDER CATTLE: The morning bounce higher in feeder cattle futures is not only impressive based on the ability to push prices $2 per cwt higher in most nearby contracts, but that prices are sustaining gains through the entire morning is a break from previous sessions. This steady market buying is helping to spark some additional underlying support at the end of the week. Although the market still remains extremely weak, and is going to take much more than a one-day market bounce to draw active support back into the market, a strong close Friday could kindle some additional market support early next week. LEAN HOGS: Renewed buyer support is seen through the lean hog futures complex Friday morning with nearby futures holding triple-digit gains as the focus has moved to focusing on previous market support and backing away from losses seen Thursday. The trend in the market remains firm with traders still focusing on the recent support in market fundamentals as well as the ability to continue to move additional pork through early fall months. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.82 per cwt to $69.83 per cwt with the range from $62.00 to $72.00 per cwt on 1,943 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.30 per cwt to $70.71 per cwt with the range from $62.00 to $73.50 per cwt on 340 head reported sold. The National Pork Plant Report reported 137 loads selling with prices up $0.10 per cwt. Lean hog index for 9/30 is at $72.65 up 0.42, with a projected two-day index of $73.08, up 0.41. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.